How do manufacturers fund a long production run

2 min read

Cash lockedIn work-in-progress

Weeks of gapBefore payment

Fund the runWorking capital

Where the cash goes

You buy raw materials and pay labour throughout a production run, but the customer pays only after delivery — often weeks later. Cash sits in work-in-progress the whole time.

Fund the cycle

A working-capital facility covers materials and labour during production, and invoice finance releases cash on delivery. Size the tied-up amount on the working-capital calculator.

Match finance to the run length

Longer runs mean more cash tied up for longer. Structure the facility to the production cycle so the finance clears as each batch is paid.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

Can finance cover raw materials and labour mid-production?

Yes. A working-capital facility funds materials and wages during a production run, and is repaid when the finished goods are delivered and invoiced.

Why do manufacturers run short of cash on big orders?

Because a large order ties up proportionally more cash in materials and work-in-progress before delivery. The order is profitable; the cash timing is the strain finance solves.